Where will arbitration be conducted for Belocal franchise disputes?

According to Belocal's 2025 Franchise Disclosure Document, arbitration will be conducted in the city where Belocal maintains its principal business office at the time of the arbitration. This means that if a dispute arises that cannot be resolved directly between the franchisee and Belocal through mediation, the arbitration proceedings will take place at Belocal's main business location.

This requirement could mean added expenses for the franchisee, depending on their location. Franchisees may need to factor in travel costs, accommodation, and other related expenses if they are not located near Belocal's principal business office. It is important to note that the arbitrator selected must have experience in franchising or franchise law and must not have any prior business or professional relationship with either party, ensuring impartiality.

Belocal also specifies that the arbitration will be administered according to the Commercial Rules of the American Arbitration Association (AAA), and all matters relating to arbitration are governed by the Federal Arbitration Act (FAA). The arbitrator is required to provide a reasoned award in writing, which will be final and can be entered in any court with jurisdiction. Understanding these details is crucial for prospective franchisees as it sets the stage for how potential disputes will be handled and where the legal proceedings will occur.